Elliott Ups Celesio Stake

Jan 21 2014 | 9:49am ET

Elliott Management is apparently not discouraged by the failure of McKesson Corp.'s bid for rival pharmaceutical distributor Celesio.

The activist hedge fund has increased its voting stake in Celesio to 24.08%. New York-based Elliott also owns convertible bonds, which come due in October and April 2018, which could increase its voting stake to 32.01%.

Elliott had agreed—after McKesson increased its US$8.3 billion offer for Celesio—to tender its shares and sell its convertible bonds. But in spite of Elliott's support, the offer failed to attract sufficient support and was withdrawn last week.

That sent Celesio shares down sharply, a move that Elliott appears to have taken advantage of. Prior to accepting McKesson's richer offer, Elliott indicated it was not concerned if the deal failed, saying that Celesio could sell its wholesale and pharmacy businesses separately.


In Depth

The Benefits Of Private Debt Investing

May 7 2015 | 10:43am ET

Jeffrey Haas is chief operating officer of Old Hill Partners Inc., an SEC-registered...

Lifestyle

Yale Receives $150 Million Gift from Blackstone’s Schwarzman

May 12 2015 | 12:10am ET

Yale University announced it has received a $150 million gift from Blackstone Group...

Guest Contributor

How To Generate 6% Yield In A Volatile World

May 22 2015 | 6:41am ET

Private credit comes in many different flavors, all with the common themes of over...

 

Editor's Note